• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 18 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 5 hours Starvation, horror in Venezuela
  • 13 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 14 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 6 hours China goes against US natural gas
  • 7 hours Why hydrogen economics does not work
India Surges Ahead In Global Solar Race

India Surges Ahead In Global Solar Race

India is soaring past the…

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Environmentalist actions in France may…

Toshiba To Exit Nuclear Plant Construction Business

Toshiba nuclear plant

Toshiba is preparing to put an end to its nuclear power plant construction business as part of damage control measures following a huge write-off on its U.S. nuclear operations.

This is what unnamed sources close to the company told media, adding that from now on, the conglomerate’s nuclear operations will be restricted to maintenance and decommissioning. Still, Toshiba will complete the ongoing work on four new NPPs in the U.S., which should be put into operation in 2020.

The write-off that may bring down Toshiba’s nuclear business has been estimated at US$6.08 billion and is related to its 2015 acquisition of U.S. CB&I Stone & Webster. The size of the acquisition deal, closed by Toshiba’s U.S. subsidiary Westinghouse, was just US$229 million.

However, the low value of the company came with risks, as the New York Times recalled in a report last month, as the buyer and the seller, Chicago Bridge & Iron Company, argued over the true value of CB&I Stone & Webster. Cost overruns and delays threatened the successful completion of the target company’s construction projects, and the two parties to the deal could not reach an agreement as to who should shoulder the associated expenses.

Related: Is Deepwater Drilling About To Make A Comeback?

The blow from the bad deal with Chicago Bridge & Iron seems to be so serious that Toshiba is mulling over the sale of Westinghouse, again according to unnamed sources. A sale would limit its exposure to future losses associated with nuclear power projects in the U.S., as would a partial stake sale, the sources explained.

Yet Westinghouse itself is not in the most rosy of conditions and it would be a tough job to find a willing buyer, the Japan Times notes. Toshiba took a US$2.3-billion write-down on the Westinghouse acquisition last year, after buying it for US$5.4 billion in 2006.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News